The visual aspects of candlestick charts allows an investor to easily see what the overall investment nature is of the market trend. Currently, the slow steady uptrend of the market indexes, continuing to trade above the T-line, reveals that there is not yet any great exuberance. The slow steady trend indicates profit-taking along the way, making the uptrend much more solid. This simple assessment can be made by analyzing the nature of each daily candlestick formation. Although the uptrend is very slow, these market environments allow the candlestick investor to scan for the trading patterns that are going to produce much greater profits versus merely slow uptrending stock positions in a slow uptrending market. The result of frypan bottom breakout’s, cradle patterns, scoop patterns and J-hook patterns provide to obvious benefits. First, they illustrate when a high probability trend move is about to occur and the trend is usually much stronger than ordinary uptrending price moves. Additionally, when the markets do have soft days during the uptrend, candlestick patterns usually continue in the uptrending mode because a candlestick pattern is a build up of investor sentiment that does not change immediately even though the daily general market move may be lower.
Identifying the strong patterns is very simple because of the visual aspects. Numerous frypan bottom patterns are in progress. The expected results are much greater profitability’s. Simple money management techniques utilizing candlestick patterns provides a trading platform that produces consistent profits based upon the majority of positions moving in the right direction at the right time, and with good profitability.
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Good Investing,
The Candlestick Forum Team
